Since Prime Minister Altankhyag has unveiled 100, June 2014

Since Prime Minister Altankhyag has unveiled 100-Day Push to revive the economy at the end of April, the subtle optimism among market participants has prevailed in the market. However, currency and inflow of FDI continue to be weak. The main reasons are deteriorating economy and weakened external and debt profiles. Unless the healthiness of the budget in Mongolia is restored, both equity and debt investors will not resume to invest in assets in Mongolia. Therefore, we believe more structural reform to rebuild the budget is required as soon as possible. To this end, the recent move of Australia to restructure the budget is worth studying.